Miami properties

Challenges and Hope: The Roller Coaster Ride of US Home Sales in 2023

By Columbus International,23 January 2024

In 2023, the US housing market faced significant headwinds, resulting in a nearly 30-year low in previously occupied home sales. Rising mortgage rates, soaring prices, and limited inventory created a challenging landscape for prospective homeowners. According to the National Association of Realtors (NAR), existing home sales plummeted to 4.09 million last year, marking an 18.7% decline from 2022. This represents the weakest year for home sales since 1995 and the most substantial annual drop since the housing slump of 2007. The median national home price reached a record high of $389,800, experiencing a modest uptick of just under 1% for the entire year, as reported by the NAR. The surge in mortgage rates in 2023, reaching a two-decade high of 7.08% in late October, added to the challenges.

The Federal Reserve’s efforts to cool the economy and control inflation contributed to this increase. High borrowing costs, coupled with already soaring home prices, constrained the purchasing power of potential homebuyers. However, there’s a glimmer of hope on the horizon. Mortgage rates have been easing since November, aligning with a decrease in the 10-year Treasury yield. The optimism stems from the belief that inflation has subsided enough for the Federal Reserve to consider cutting interest rates this year. As of this week, the average rate on a 30-year home loan stands at 6.6%, according to Freddie Mac. Economists anticipate further rate easing, which could boost demand as the spring homebuying season approaches in late February. Despite the positive outlook, the current average rate remains significantly higher than two years ago when it stood at 3.56%. This substantial gap has contributed to a limited supply of previously occupied homes on the market, as homeowners with rock-bottom rates hesitate to sell. In December, existing home sales declined by 1% from the previous month, reaching a seasonally adjusted annual rate of 3.78 million—the slowest pace since August 2010, according to the NAR. December’s sales fell by 6.2% from a year earlier, missing economists’ expectations. Lawrence Yun, the NAR’s chief economist, remains cautiously optimistic, stating, “The latest month’s sales look to be the bottom before inevitably turning higher in the new year. Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.” While challenges persist, there is anticipation for a positive shift in the housing market as we step into the new year.

Source: New York Post

Miami Art Week Draws a Wave of Affluent Visitors, Prompting Vigilance in the Real Estate Sector

By Columbus International,4 December 2023

The Miami Art Week has attracted a flood of affluent visitors, prompting heightened vigilance in the real estate industry. Numerous potential homebuyers have already scheduled visits to sales galleries and opulent residences, while others plan to explore properties while participating in Art Basel, Art Miami, and various affiliated art fairs scheduled for the week. Developers and real estate firms are actively supporting these events, with some scaling back their involvement this year. Nevertheless, prominent agents and firms are organizing private dinners, networking events, and even boat tours to capitalize on the presence of wealthy clients.

This year, Sotheby’s International Realty, based in Coconut Grove, is the sponsor for Art Basel Miami Beach at the Miami Beach Convention Center, taking over from Douglas Elliman. Under the umbrella of Anywhere Real Estate, Sotheby’s International Realty secured a multi-year deal with the art show, intending to showcase new developments and luxury homes within the Collectors’ Lounge. While firms like Cervera Real Estate and Elliman are not sponsoring fairs this year, prospective buyers primarily attend art-related events, and the impact on real estate brokers is typically felt weeks later. Nevertheless, brokers proactively seize the opportunity to capture their attention. It’s noted that real estate agency clients are scheduling appointments well in advance for in-person showings of homes on the Venetian Islands, along North Bay Road in Miami Beach, and on Fisher Island. Several Miami real estate agents are organizing networking events, private brunches, and open houses during Miami Art Week to showcase their portfolio.

Additionally, various developers are unveiling new art installations, especially in neighborhoods like the Miami Design District, with figures like Craig Robins and Jorge Pérez showcasing art from their personal collections. Pérez, the owner of Miami-based Related Group, the largest condo developer in South Florida, revealed a new exhibit at his private gallery, El Espacio 23, in Allapattah in early November. As the high season for South Florida real estate kicks off, new listings are emerging on the market, including the waterfront island estate Tarpon Isle in Palm Beach, reintroduced by developer Todd Glaser and partners at a reduced price of $187.5 million with Suzanne Frisbie of the Corcoran Group. “One Sotheby’s Lena Johnson described Art Week as the ‘it’ cultural moment,” emphasizing its growing significance in the cultural calendar.

Source: The Real Deal

Miami’s Italian Renaissance: A Cultural Infusion in the Magic City’s Lifestyle and Real Estate

By Columbus International,29 November 2023

Miami has long been celebrated as Latin America’s informal northern capital, with Latin culture deeply embedded in its vibrant atmosphere. However, the city is now witnessing a surge in admiration for Italian influences alongside its Central and South American counterparts, marking a notable shift in cultural dynamics.

In a recent Forbes article, the transformation is evident not just in language, as Spanish is no longer the sole Romance Language resonating in residents’ conversations. Italian culture is making a substantial impact on the Magic City, leaving an indelible mark on various facets of life, including hospitality, fine dining, and real estate. Prominent hospitality brands like Bulgari Hotels & Resorts have found a home in Miami, while a plethora of exquisite Italian restaurants, including renowned establishments like Carbone, Contessa, and MAMO, have become integral parts of the city’s culinary landscape. Italian design and style have also permeated into the realm of real estate developments, with luxury condominium projects such as VITA at Grove Isle and ONDA Residences boasting Italian finishes and materials. The towering 57-story luxury condominium, Missoni Baia Miami, stands as the world’s first branded residential tower from the iconic Italian fashion house, showcasing its multihued design palette and Missoni Home furniture collection. Cipriani Residences Miami, a ground-up development in the Brickell neighborhood, is another testament to the Italian influence. Developed by South Florida’s Mast Capital in collaboration with the illustrious Cipriani family, globally renowned for their restaurants and nightlife venues, this 80-story-tall residential tower will feature 397 luxury condominium units, resort-style amenities, and classic Italian cuisine. Noteworthy in this cultural renaissance is VILLA Miami, a 55-story boutique residence crafted by TERRA and One Thousand Group.

Partnering with Major Food Group (MFG), the hospitality firm behind Carbone and Contessa, VILLA Miami promises a unique residential experience. MFG will curate the tower’s lifestyle offerings, incorporating Italian design into every aspect, from dining to leisure and wellness. Ugo Colombo, CMC Group founder, emphasizes the authenticity of Italian design brought by born-and-bred Italians involved in these projects. Colombo, alongside Onda Residences co-developer Valerio Morabito and their design partners, Molteni&C and A++ Human Sustainable Architecture, aims to create timeless, quality residential developments deeply rooted in the principles of fine craftsmanship and elegant architecture. “At both ONDA and Vita, we are creating timeless, quality residential developments,” says Colombo. “We have translated what it means to live in true luxury for the modern buyer, showcasing all aspects of ‘La Dolce Vita.'” These Italian-inspired developments present Miami residents and potential buyers with a taste of the good life, eliminating the need to travel to Rome to experience La Dolce Vita. The city’s western outpost has become a cultural melting pot, where the influences of Latin America and Italy converge, offering a unique blend of lifestyles and experiences. As David Martin, CEO of Terra, affirms, “VILLA’s Italian DNA is infused throughout all aspects, from the design to programming, amenities, and services,” making it an instant point of interest for those seeking a touch of Italian elegance in the Magic City. [Source: Forbes]

Jeff Bezos’ bold move: Miami beckons as he leaves Seattle behind (Source: People)

By Columbus International,3 November 2023

The Amazon Titan, Jeff Bezos, is trading the rain-soaked Pacific Northwest for the sun-drenched allure of Miami’s real estate scene. The 59-year-old tech mogul made a splash on Instagram when he unveiled his plans to relocate to Miami in the near future. In his social media announcement, Bezos shared a nostalgic clip from the early days of Amazon, reflecting on his roots in Seattle. “Seattle has been my home since 1994 when I started Amazon out of my garage,” he fondly reminisced. Notably, Bezos revealed that his father, Miguel Bezos, played the role of the cameraman in the video, adding a personal touch to the post.

“My parents [Miguel and Jacklyn] have always been my biggest supporters. They recently moved back to Miami, the place we lived when I was younger (Miami Palmetto High class of ’82 — GO Panthers!).” Bezos went on to explain the driving force behind his upcoming relocation, stating, “I want to be close to my parents, and [fiancée] Lauren and I love Miami.” He also highlighted the shifting focus of his aerospace company, Blue Origin, towards Florida’s Cape Canaveral. While expressing his deep attachment to Seattle, Bezos acknowledged the bittersweet emotions surrounding the move. “As exciting as the move is, it’s an emotional decision for me. Seattle, you will always have a piece of my heart.” In the video clip from 1994, a young Bezos guided a tour of Amazon’s early headquarters in his three-bedroom Seattle home. The scene showcased a cluttered yet promising office space filled with papers, books, fax machines, and dated computers. Bezos humorously quipped, “That’s about it. It doesn’t take long to tour the offices of Amazon.com.”

This monumental decision to relocate follows Bezos’ recent acquisition of a luxurious seven-bedroom mansion on a private island in Miami’s Biscayne Bay. The opulent property, nestled on a man-made island, was secured in September for an impressive $79 million, according to Bloomberg. This purchase came on the heels of Bezos’ earlier acquisition of a neighboring home in June, which he acquired for $68 million.

Together, these two properties span approximately 1.8 acres on the exclusive Florida island, marking a significant footprint in Miami’s real estate landscape. Before embarking on this real estate adventure, Bezos took another significant step in his personal life when he proposed to his girlfriend, Lauren Sánchez, in late May. Friends close to the couple expressed their excitement, describing it as “her dream come true.” Bezos and Sánchez made their relationship public in 2019, following Bezos’ divorce from his wife of 25 years, MacKenzie. Miami is now poised to be the backdrop for the next chapter in Bezos’ extraordinary journey.

Source: People